Wear and tear allowance

[johnjw]

Quoting from HMRC PIM 3200
"The wear and tear allowance is calculated by taking 10% of the net rent received for the furnished accommodation. To find the "net rent" you deduct charges and services that would normally be borne by the tenant but are, in fact, borne by the taxpayer ( for example, council tax, water and sewage rates etc.)."
I cannot understand the second sentence relating to deductions and calculation of "net rent"
Could someone offer an explanation please?

[mariner]

I suggest

furnished flat rent = £10,000pa inc 1 or more of C Tax and utility bills, payable by LL (taxpayer)
These bills = £2.000pa
so net rent =£8,000
10% depreciation = £800 max

[johnjw]

Mariner, thanks for your reply. I'm sure you are correct. HMRC's use of the word "taxpayer" instead of "landlord", threw me off track.
So the situation is that if the tenant pays the Council tax and utility bills (the normal situation in my case), then the 10% allowance is in fact 10% of the rent received.

[mariner]

IMO ................ Yes